i'm jim cramer and welcome to my world. >> you need to get in the game! firms are going to go out of business and he's nuts, they're nuts! they know nothing! i always like to say, there's a bull market somewhere and i kkpromise -- "mad money," you can't afford to miss it. hey, i'm cramer! welcome to "mad money." welcome to cramerica. other people want to make friends, i'm just trying to make you a little money. my job is not just to entertain you, but to teach and to coach, so call me at 1-800-743-cnbc. listen up, okay! listen up! this, right here, this is europe, okay? this is the united states, all right? this, this is china, all right? we are here, they're over there.

and they're over there, okay? you with me so far? we have 310 million people. these guys have about 739 million people. these guys have 1.3 billion people. i want you to keep this geography lesson in mind. because it is taking control of the averages on almost a daily basis, and i can't do anything about it! including today, where the dow sank 81 points. the s&p gave up 0.67%. nasdaq, 1.27. it's terrible out there. why is geography so important? because many companies are hostage to this map. see, we made big bets here and there. remember those today, that's europe and china, remember? and unless the executives at these companies are inventive, creative, technologically brilliant, these bets are starting to backfire. meanwhile, other companies decide to focus here. this is -- remember the 310 million? and when their executives get it right, it's nothing short of magnificent.

especially on one more ugly day like today. let's use the earnings reports just from this week to drive home the point. start with verizon, one of my absolute favorite companies, reporting outstanding growth, adding more than 600,000 subscribers and simultaneously getting each subscriber on average to pay more. pay more for the service because they're selling more smartphones, data hogs. incredible numbers. i can't believe that verizon has 93 million subscribers. that's almost one in three of all the people here. even better, verizon has nary a subscriber here or here. that means it can't disappoint, because if you have customers in this place or that place, they're letting you down! they're not buying! they're not doing what we thought they'd do. so verizon represents the best we have, domestic security growth, terrific balance sheet, and don't forget, a 4% yield. of course, it's not a five anymore, because the stock went up. but after this quarter, they can boost the dividend. the people who run verizon are simply amazing.

thank you, gentlemen. your work and the work of your team sent verizon roaring up from $1.57 on a bad day. next is union pacific. you know we think the world of the rails here. we like their slap-happy oligopoly and their domestic focus. another geography lesson. there is no rail line that goes from here to here. and there's none that goes to there. that's an advantage. all the railroads have the same kind of cargo. they have chemicals, automobiles, minute intermodal, agriculture, and coal. but the mixes are different. and the amount of money they're making from these cargoes varies widely. union pacific doesn't have that much coal, and its coal business isn't down as much as the others. union pacific has moved aggressively into the oil business, the most important railroad from the bakken shale, which is here, and is now producing more than 750,000 barrels a day, up from more than 400,000 just 18 months ago. union pacific figured it out. james young, the ceo, figured it out!

and that's why the stock rallied $5.52 or 4%. how about kinder morgan energy partners, the nation's largest pipeline company, which has also figured out that america does not have enough pipelines to take all of our bountiful newfound oil and gas to where it is needed, which, by the way, is not here or not there. it stays here! rich kinder, the ceo, knew this, and he spent billions to make you billions with kinder morgan, laying down pipe and profiting from it. which is why he can keep raising distribution without taking on more risk, like he did yesterday. we're going to have rich on the show tonight to talk about his vision and how lucrative that vision has been for shareholders of kmp, who have enjoyed a gain of almost 13% this year, with a stock that is just about a buck from its high. you probably don't know christopher connor. that's okay, no reason you should. well, i know him, not personally, but he's the ceo of sherwin-williams, who's managed to take advantage of the housing boom in this country and sell the most paint in the best stores, which is how he could deliver a stupendous number last

night, building on the gains this stock has already given you. people think it couldn't continue, because it's just paint. think again. of course, you can move overseas, provided you have something proprietary. something that no one else has. take david dempry, the ceo of core labs. do you know that core labs put out a number yesterday that was just -- did you see it? it was astounding. a total smash with every division hitting a record. we're all lamenting the lack of growth in technology, but that's because we're looking for technology in all the wrong places, like personal computers, which are just like electric coasters now. in servers, in cell phones. we should be looking for it in the oil patch, where core labs is responsible for mapping out and foipding out where the ail and gas is. the technology that core labs has invented is what's behind so many of these new fields. whether it be noble energy off the coast of israel, that's like in here, okay? or the gulf, or a whole host of companies looking for the next big discovery on this continent. oh, and let's be really discerning.

when we get results from many of the oil and gas companies over the next few days, we're going to hear moaning and groaning about how the commodities come down in price. but when you have proprietary technology like core, you don't need to worry about the price of the commodity, because every company needs you to find oil where the oil is and help them get it out of the ground. that's why this stock rocketed $10 today, to finish at $136.50. okay, now, not all the companies have the luxury of being totally domestic. they could be far-flung, because they need to be in order to capture the growth of the emerging market countries. through, again, proprietary products that are so loved that they can transcend the slowdown in here and also there, too. who's got that? how about pepsico, pep? this company is pushed aggressively overseas, and products turn out to be more loved there than they are here. like the dew, mountain dew. doritos, which pretty clearly cross over the whole world. here's areas that like doritos. this thing's really big. that's the problem with the

mercatur projection. remember when you would go to fifth grade and say, that's the biggest continent on earth. that's the problem with the technology. many people used to care only about pepsico's share of the carbonated beverage drink market in the u.s. and then the health in gatorade. look, those still matter. but i'm now looking at the reinvention of more than 50% of the business that is snacks. good and good for you. and i'm looking for new products that the chinese love. this is not your father's pepsico, or my pepsico, for that matter, which is why we celebrate the success of pepsico's remarkable team and its leader in ingenuity, which is why the stock rallied $2 hadn't 40 today and why is why we're thrilled to have her on later on in the show. i know chemicals have little to do with snacks and soda, but when it comes to success, you have to follow the same playbook, which is the success of chuck bunch. you've seen him many times on the show. he's the ceo of ppg, who shed its low-morning commodity business and moved into high-end coatings that are used not just domestically, but in the remaining growth areas of asia! that's how ppg could rally $8.25

to $140.65 after a stellar earnings report on a real bad day. here's the bottom line. tonight we're praising the executioners, those who executed on game plans and made us a huge amount of money. james young from union pacific and rich kinder from kinder morgue ann, christopher connor at sherwin -- williams, pepsico's indra nooyi, and we'll hear from chuck bunch later from ppg. money makers all. thanks for everything you've done for your shareholders. congratulations on your fabulous quarters, at a time when so many executives and analysts and fund managers lament that the environment worldwide is just too hard to deliver the dough. jimmy in california. jimmy! >> caller: boo yeah, cramer, how are you? >> real good, partner. how are you? >> caller: real good, thanks. in light of the tragedies in texas, with the pullback in fertilizer stocks and the biggest corn crop since '36, what do you think about rnf with a 9% dividend, or are you still sticking with seeya? >> we bought thought that was a really good idea.

it's funny it hit your radar screen and my radar screen. i think that rentech is a good, good idea. it's just funny, because i was thinking about doing that on the show next week. let's go to chris in california, chris? >> caller: hey, jim, i love your show. love your energy. i have a question regarding ebay. the stock fell after earnings yesterday. is this a overreaction, and where do we go from here? >> i thought it was an overreaction, but there'll probably be a second day of overreaction, because people were so stunned that they actually talked about a bit of a slowdown in europe. i think the important takeaway is they reiterated and reaffirmed their growth, which is amazing. i want to buy ebay, not sell it. real winners don't make excuses, they execute. sometimes it pays to follow the leader. tonight we're praising executioners chiefly in these areas. this other area, this area starting to do a lot of business though. stay close to that one. "mad money" will be right back.

coming up, something to snack on? cramer's got three exclusives you can't afford to miss. including an inside look at pepsico's efforts to refresh its iconic image with ceo indra nooyi, fresh off today's earnings report that sent its stock surging to a new all-time high. plus, with nat gas on the rise and oil on the decline, cramer's with pipeline powerhouse kinder morgan. don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.

if you want to navigate through this market, that's becoming more difficult by the day, right? what you need more than anything else is consistency. and believe it or not, despite the startling plunge in the price of oil, few companies are more consistent than the high-quality pipeline operators, like cramer fave kinder morgan energy partners, symbol kmp for you home gamers, plus in a world that's starved for yield, kinder

morgan pays a monster dividend and it's up more than 5.77%, more than triple the return you would get from ten-year u.s. treasuries. kinder morgan is the largest pipeline player out there, 73,000 miles of pipe. roughly 180 terminals. company ships everything from refined gas to carbon dioxide. with the price of crude down $8 a barrel in the last couple of weeks, how come kmp is only a point away from its all-time high? simple, because as i always say, this business is like a giant toll road operator. kinder morgan collects fees to transport oil and gas, so there's very little exposure to commodity prices. although kinder morgan partners may largely be insulated from the advice tuesday -- vicissitudes of the volatility oil price, they transport the oil and gas from where it's produced to where it's actually needed. that's a fabulous business to be in, in a time when we're producing of these fossil fuels than years and years.

that's why kinder morgan has been moving aggressively into more natural gas assets, first with the closing of el paso, and more recently with this copeno deal, which will give them many natural gas gathering operations and processes operations in oklahoma. kinder morgan reported a good quarter last night. in-line earnings, better than expected revenues, up year over year thanks to higher volumes in its interstate pipeline business. plus, of course, they raised the quarterly distribution by a penny, now that you get that 5.77% yield. six consecutive quarters of higher payouts. this is the best-run company in the industry by the smartest person in the oil patch. the great rich kinder. and the stock is up 70% since i first started recommending this back in 2007. however, if you reinvest your distributions, it's 153% return. that is the power of long-term horizon, and i think the run can be far from over. let's check in with rich kinder, who pays himself $1 a year, by the way. the fabulous chairman and ceo of kinder morgan. find out more about the quarter's prospects. rich, welcome back to "mad money". >> thank you, jim. glad to be here. >> this was the most bullish

i've ever heard you on natural gas. you were not tinged by any sort of belief that it was not going to happen. this conference call, you were just plain out upbeat. >> well, i think it is. as i've said so many times before, and you and i have talked, the nice thing about natural gas is, it's domestic, it's cheap, it's abundant, it's here to stay, and we have, conservatively, i think over a 100-year supply. and i think you're going to see it increasingly viewed as the fossil fuel of the future. and i think it has a great future and if you look at our footprint, we have 70,000 miles of natural gas pipelines, almost 80,000 post copeno in all kinds of pipelines. so i think we're well positioned, as are some other companies, to take advantage of this tremendous uptick in natural gas usage. >> now, how did you know -- i mean, you're the guys who have already built -- you're building railroads. how did you know you had to find a way to get this stuff up and you couldn't just wait for the pipes?

>> well, we thought all along, what we try to do is try to stay a step ahead and try to serve our customers as best we can. and we thought early on that you're not going to be able to build a pipeline infrastructure to access all these new sources of supply fast enough to keep up with the production growth. and so, we bought an interest in a railroad a couple of years ago, we now have five crude to rail facilities, including the first really large-scale one here on the houston ship channel, where we'll be able to handle 210,000 barrels a day in unit trains. so we think there's just a tremendous need for infrastructure across the country. and if you look at the kinder morgan companies, kmp, as you said, pays a little less than 6% yield. we've got about a 6% to 7% growth this year. kmi, the general partner of kmp, pays about a 4% yield, and it's a c-corp., and we have about 12% growth this year. and you put those together, and

either company you buy, you're on your way to the potential for very nice return. to me it makes a lot of sense. that's why i've never sold a share. >> never sold a share and don't pay yourself much at all. >> that's right. >> rich, you've got $12 billion of expansion projects you're talking about, including one i think is quite exciting. you're building a pipe that is going to actually get oil to california, the most landlocked state in the country. how's that working? >> well, we think we're in an open season right now, jim, and if we get the kind of interest from the industry that we hope and expect, we'll be in a position to move forward with it, obviously, like everything else at kinder morgan, we're very conservative, and if we don't have long-term throughput contracts, we won't build it. but the essence of it is this. we'll convert some natural gas infrastructure that's duplicative to some of our other lines at this time, we'll reverse it, and take permian oil which sells at a very low price

compared to what the refiners on the west coast pay for their oil. we'll be able to move it out to the west coast, and we think it's a marriage made in heaven. but, again, it depends on the producers and the refiners, a combination of the two really wanting to use our capacity. it's about a $2 billion project and we could move, initially, 250,000 barrels a day. it could be expanded upward from that. >> rich, one of the things -- we've had david dempshire on and floyd wilshire. i know you know all these characters. and they're talking about maybe the largest find that hasn't even been announced yet in the united states. maybe bigger than eagle, maybe bigger than bakken. are you ready with pipe to where this might be? >> well, i think we're ready with pipe in most places, and the permian, for example, is one place where you're just -- we've been out there a long time through our co2 operations, and you're just seeing a whole renaissance in the permian basin today. there's just an awful lot of opportunities. but, you know, it's true across the country.

as you and i have talked before, the marcellus and the utica up in your neck of the woods is another great opportunity. of course, we have one of the largest pipelines running through that in our tennessee gas pipeline. tremendous opportunities in the bakken and then great opportunities throughout the state of texas. the eagleford and the permian, as well as the barnette shale, of course. so we think there's just tremendous opportunities, and we think that having the footprint that we have just tremendously important, and it's just going to give us more opportunities. you talked about $12 billion, and it's a bit north of that, as we said yesterday. but we think it's going to get bigger. we think we're going to have more and more projects as time goes on that we can continue to grow our system. >> well, rich, you've done a terrific job, i want to thank you again for coming on the show. thank you for boosting distribution. many people watch this show own one of the kinder morgan companies. thank you, sir. >> well, jim, thank you very much. appreciate it. >> okay. good deal. that's rich kinder, chairman and

ceo of kmp. there are other ones too. look them all up. i like the kmp because i know you like yields. stay with cramer. coming up, take a sip. >> people who think yum say, pepsi, please. >> can this iconic company continue to take ground in the cola wars. as shares of pepsico surge to a new all-time high, don't miss cramer's exclusive with its ceo, indra nooyi, fresh off earnings.

this is a total best of times/worst of times, tale of two cities market. on a tough day where most stocks went down, what i call the have-nots, there's still an elite few that went higher, the haves. my job is to help you find that bull market, even when the overall market is not so hot, like now. today, that bull was led by pepsico, pep, which rocketed higher in the wake of a terrific quarter. pepsico, the largest snacks company on earth, thanks to frito lay, and the second largest beverage company in the world, reported a 7 cents earnings beat off a 70% basis, while the revenue came in higher than expected and the company reaffirmed its guidance for 201. in short, the company is delivering. they're providing more sales worldwide, which can mean higher dividends and bigger stock buybacks down the road. it's awfully difficult to get mid-single digit organic growth in this country as well as

double-digit earnings per share growth in this country, and pepsico's got them both. these are the best numbers i've seen from all the food companies i follow. no wonder the stock rallied $2.31, giving you an outstanding almost 19% gain for the year. let's check in with indra nooyi, the excellent chairman and ceo of pepsico to hear more about the quarter and where her company is headed. good to see you. >> nice to see you. >> first of all, congratulations. this is a transformed company from when you first took over. what are the three things that you've done that finally paid off in this unbelievable upside surprise? >> i think the three big things, first of all, thank you for having me on the show. >> of course. >> i'm a big fan of jim cramer, as you know, and it is great to be here on the show. >> thank you. >> and i wore green in sympathy for our fellow citizens in boston. >> yes. >> and our texas citizens. so, it's good to be here. i think pepsico is a great american company, that's also going global, and has always been a great iconic company. but we have to transform, because in the last five years, the world around us has changed in profound ways.

the world has shifted from being western centric to being more distributed globally. it's shifted from being just youthful to being more, you know, based on aging populations and young people. >> okay. >> and it's also shifted in that this is no longer a time when people are just focused on fun products, they're also focused on good for you products. they want a balanced portfolio. so we at pepsico knew we had to change. over the last three years, we've been doing the following. first, we reinforced the best parts of our businesses. we took our snacks, our beverages and made them more permissible, reduced salts, reduced fat levels, reduced sugar levels, we did all of that with our core portfolio, so made our fun for you products highly permissible, so you can enjoy them without any guilt. the second thing we did was, we started dialing up all the things that could grow. we invested more in emerging and developing markets, we brought our good for our products and started to grow them, so we can keep this growth engine going. and the third thing we did, we rebuilt the capabilities of the

company. because the company had phenomenal talent and capabilities for the time before 2005. but post-2006, in a new world, we needed new talent, new thinking, new ways of operating, so we fundamentally transformed the company. and the reason i feel good about the company is because, through this period, we performed while we transformed. >> okay. now, do you think this quarter, which i think was the big payoff quarter, will put to rest this notion that there's some sort of radical transformation that still needs to be done with your company, or that you must make a giant acquisition in order to be able to change the coloration of what you've done? >> pepsico's a $67 billion company. and at 67, we have the size and scope to be pretty much in every country of the world and be of a size that matters in every country. so i think we are the right size today. and in terms of our portfolio, we have a wonderful balance of products that are fun for you, better for you, good for you.

we have snacks, we have beverages. we cover all day parts. you can have tropicana for breakfast, naked juice for breakfast, yogurt. we cover all day parts. through the day, you can feast on pepsico products. so i really don't see a need for pepsico to take on any other businesses. i think we are a beautiful architected portfolio that's performing. >> now, pepsico has, at times, had to reinvent itself. it did spin off young. if nelson pelt, say, a large investor, came to you and said, i think this is a match made in heaven. we merge mogalese with foreign pepsico. we keep domestic with kraft. we add the cash cow that is those, so for people who want a high yield can get that, and the growth of this international pepsico company would be amazing. is that something that should be thought of? >> jim, i'll tell you, i'm not going to comment on any external person talking about pepsico,

but let me talk about us as pepsico. every one of us in pepsico are what we call internal activists. >> internal activists? >> yeah. we want to create the best company and generate the most shareholder value. but in order to do that on a consistent basis, on a sustained basis, you can't just focus on every quarter and say, if one quarter is not up to snuff or something should be terrible, that's not the way you build sustainable companies. that's not the way you build iconic american companies. and god knows as a country, we need big companies that are performing very well to make sure our country remains strong. so i think as a company, we've done everything right to make sure that we build a solid foundation for the company. let me talk about us. we have the size, we have the portfolio, we have the scale. we will look at all ideas, whoever gives it. if you have an idea, i'll take it. >> well, i have an idea. keep doing what you're doing. because i like stocks that win. >> absolutely. >> and that's what you're doing. now, it turns out there's some brands that you have that were more iconic than we realized. i'm looking at a brand that is very powerful in india.

i am looking at a brand that turned out to be much, and this was a dying brand, years and years ago, i'm talking about quaker. >> these turned to be bigger overseas than we thought. why? >> exactly what i told you when we started the shore. when we started to focus on our good for you portfolios, we realized we had brands like quacker, tropicana, naked, gatorade that were loved around the world and we were not treating them like good for you love marks, but just refocusing on them, putting the right attention, the right investment, all of these are taking off. in many parts of the world mountain dew is a much-loved carbonated soft drink. >> youthful. >> very youthful. i think it gives you energy. >> you know i love it. i treat myself. now, flavor finalists.

i think you guys are probably the most forward company on twitter and using social media. i see flavorful, i'm supposed to be voting somewhere? >> this is a do us a flavor competition for lays. it's a program we've run around the world, and we've received about 20 million entries around the world. if you look at all the countries that we've run it in. in the u.s., this is now running, these are the three finalists. we have almost 4 million votes for these three flavors, and we'll be picking a winner pretty soon. i don't know if you've made your selection yet. >> no, but we went on twitter and asked a series of questions and wanted to know what people felt. what most people felt, what they wanted to know was, because i know you read the papers and i know you care about health, what have you done the most in pepsico to make it so the good-for-you category is also good-tasting and people want it? >> there is not a single product in pepsico that doesn't taste great. there is not one product. you can try anything that we make, anything here, or anything you buy in the store. every product of pepsico tastes

simply fantastic. and our goal is very simple, jim. we want to take the fun-for-you products and make them the most permissible fun-for-you products. we want to give you a whole bunch of better for you products like diet pepsi, pepsi max, baked lays, so if you want to cut back on fat or sugar, we have the products for you. and we want to give you great-tasting nutritious products like tropicana and quaker oats because we never want you to trade off taste for health. >> do you -- international palates that may not necessarily be in the good for you category. if you want to become 75% international, would you have to sacrifice some of the good for you and get that portfolio more to good because of where tastes are worldwide? >> actually not. interestingly, in a country like china, where we're still building the per-caps for

carbonated soft drinks and for lays potato chips, quaker is growing equally fast. quaker conji, a breakfast product in china, is growing in double digits. i think the fascinating thing that we're noticing is, it is not a sequential growth, where you first exhaust the fun for you growth and then get into good for you, you have to grow all parts of the portfolio at the same time. and that's where we are seeing, you know, the 47% growth in our foods business in q1 in china came because quaker is growing as much as lays. >> incredible. now, the twitter people also want to know, is it still coke versus pepsi, and how are you going to beat coke? i tried to explain to people, but you only have 140 characters, that these are no longer similar animals. that maybe at one point it was pepsico versus coca-cola, but it's not anymore. you don't think of it like that anymore. >> it used to be an epic battle, but at some point we've got to go to tomorrow's epic battle, and tomorrow's epic battle is not a pepsi versus a coca-cola battle.

the battleground is completely different portfolio to portfolio. the sooner we all realize that, we'll have much more fun. >> you're the most polite person on all the earnings call. and i lose my temper, because i heard nothing but carbonated soda drink questions. the analyst community is just now catching up to what you've done. >> well, you know what, they're justified in asking those questions, because they're used to following pepsi versus coke. many are beverage analysts, so they're comfortable in asking questions in that area. but i think over the years, i've noticed that all of them are now realizing that we are a very diversified food and beverage company. and they're now beginning to get the pepsico story. it behooves us to tell them the story the right way too, and we're beginning to do that. >> i'm going to give you this chance on my last question, i think you deserve it after this great quarter. there were people who questioned your judgment. is this it? just total vindication? because that's how i look at it. >> you know, jim, i tell you, i have to keep performing.

pepsico has to keep performing. we have to earn the trust of people every year, every quarter. that's what we try to do. >> well, to me the stock market is the voting machine, and the voting machine says you've been re-elected. that's indra nooyi, chairman and ceo of pepsico. thank you so much. great to meet you on "mad money." thank you. i know what you're thinking... transit fares! as in the 37 billion transit fares

we help collect each year. no? oh, right. you're thinking of the 1.6 million daily customer care interactions xerox handles. or the 900 million health insurance claims we process. so, it's no surprise to you that companies depend on today's xerox for services that simplify how work gets done. which is...pretty much what we've always stood for. with xerox, you're ready for real business.

"mad money" is back on campus next week, thursday, april 25th, and i need to hear from you, nova! shoot a tweet to our team, @madmoney and show us how you're getting ready for the show. we want your pics, your videos, whatever you've got, and you might have the opportunity to be on the lightning round.

in fact, i think we already have one from @nicky, nova's woman's track and field is so excited for "mad money" to come to nova @jimcramer, boo-yah, the #mmnova. we're excited too! and now it's time for the "lightning round" on cramer's "mad money." you know what time that is, it's time for rapid-fire calls, i tell you whether to buy, buy, buy, or sell, sell, sell. when you hear this sound, the "lightning round" is over. it's time for the "lightning round" on cramer's "mad money." herb in new york! >> caller: boo-yah! american wood mark. >> good company, but i think furniture brands is cheaper. american wood mark is well run. let's go to butch in pennsylvania. >> caller: big boo-yah from philly! >> oh, man, domino aim, partner. what's up?! >> caller: buddy, my stock is cablevision, cvc. >> just okay, just okay.

i work for a cable company, and i'll tell you that cable company's better and so are all the others. let's go to dick in virginia. dick! >> caller: thanks for taking my call. >> sure. >> caller: i have two stocks. cummings engine, it's been a little weak of late, a machinery stock and caterpillar is -- >> the problem with both of those companies is china! they have too much china. got to wait until after they report and then we can take a look at them. no, no, no, roy in florida. roy. >> caller: boo-yah, jim. this is roy from miami, florida. my question today is about ala communications. >> they missed the quarter really bad and it's down so low -- i mean, they missed the quarter bad. and i can't recommend selling into. let's go to joe in michigan. joe?! >> caller: hi, jim, your opinion on the cloud computing area, specifically, salesforce.com. >> now with a split, i think the stock will calm down and i recommend it. i think mark bettyoff is best in show. i know the stock's been rocky and tech's been bad, but i think it's a good stock. let's go to david in ohio. david? >> caller: yes, hello, jim. >> david. >> caller: a big boo-yah to you. >> the same. >> caller: i love your show,

watch it every night. >> thank you. >> caller: cpb, campbell's soup. >> they have it together, and we buy campbell soup, it's inexpensive versus the other packaged goods, campbell's and hershey's. who ever thought they would be the best in show. and that, ladies and gentlemen, is the conclusion of the "lightning round"! coming up, it's a snap. toolmaker snap-on's been a consistent primer. but it is the right tool to power your portfolio forward? cramer's looking under the hood with its ceo, next. ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box.

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you hear a lot of people fretting about how economies around the world are doing based on that broad, big-picture macro stuff. that's known as top-down. not me, no. i'm a bottoms up guy. i like to see how individual companies are actually doing, and try to extrapolate from there. take snap-on, the largest distributor of premium hand and

power tools, the company that gets the lion's share of its sale from auto repair shops and dealerships. but they also do some business in aerospace, agriculture, construction mining and manufacturing. they're a fabulous read on how all types of companies are doing across this country and in europe, china, too. europe, 21% of snap-on sales. snap-on reported this morning and while the company reported a 6 cent earnings beat, terrific, off a $1.34 basis, revenues came in a bit light, 0.9% higher year over year. in response, the stock got hit. it fell $1.63 or about 2%. it's still up 19% since the last time we spoke with the ceo, and the stock just hit a 52-week high the other day. we need to know more about what snap-on's been up to. so let's drill down with nick pinchuck, the chairman and ceo of snap-on. find out more about the quarter. welcome back to "mad money." >> nice to see you. >> thank you. this was a quarter where i felt that what you distinguished yourself in was that this is technology, this is the new introductions.

i go to your website, and i could not believe how much you created just this quarter. how much is the technology offsetting, say, a slowdown in europe, which i know you talked about in your conference call? >> technology makes a big difference. for example, europe was down single digits, high single digits, but our main technology business, which is what we call repair systems and information, things like laptops for cars, diagnostics units. you plug them in, they'll tell you what the car is saying, they'll let you see the heartbeat, they'll tell you how to fix it. and they'll let you go to the internet and get the tips from technicians all around the world as to how to fix it. that was up 9.2%. >> i went to youtube, i thought they were pretty good. people submit them to you. you don't pay those people. >> we get them from them. it's fairly interesting. that's one of the big drivers of snap-on. it's not just the xhu. it's the changing of the cars. every year, cars change. you know, i've said many times, if the president said we'd have 150 miles per gallon, i'd change him, because the cars would change, we'd need more tools and more diagnostics. >> the ordinary hand tool

company is just not a match for the digital car. for the analog car, for the '64 mustang, they can handle it, but not for these cars now. >> correct. we have a number of things, and one of the things about this, not only is technology, but it's the database. you see, you're talking about an independent garage, and they're working on 30 badges in maybe 20 years. we have the database to address that. it's proprietary and we have the best one. >> now, last time you were here, you talked about cash-rich, confidence-poor people. nothing's changed, has it? >> nothing's really changed. >> how can that be? >> the economy is sort of from bottoms up. what we saw is the auto repair mechanic is an entrepreneur himself. he works by the job. and he is cash-rich and confidence-poor. what we did see over the end of the year was a little pause, right at the beginning of the year. i think people got out of this, and it became the psychology of it all. you know, taxes are changing, payroll taxes, income taxes, sequestration. and there was a little bit of a pause. but then we saw us get out of that, and i think they're still confidence-rich -- confidence-poor --

confidence-rich and cash-poor. >> i love that phrase, and i have gave you credit of late. initially, no. military, you've had two relationships with military. one, i've never seen a company more aggressively try to hire people from the military. and the other thing is, i didn't know you did so much business with the military, and that's been tough now because of sequester. >> sure, sure. one of the things about snap-on, for years we focused on auto repair. but what we've been doing lately is rolling the snap-on brand out of the garage to critical industries where the penalty for failure is high. >> aerospace. >> aerospace, military. one of the first places we went to is military. and we built a big business there. it's been down, but aerospace is coming up. aerospace and natural resources is what double digits in the quarter for us. i was just at an aerospace facility in indianapolis. 800 technicians, 800 technicians there. i was kind of out of the cover, walking around with our guys there. and i talked to the people and even though we haven't worked in that sector, just recently, we started. when you present your car, they say, we're glad snap-on's here. we love your product.

we can't wait to use it. i used to have to throw myself in front of a van to get a snap-on product. the fact that you're here now, we're going to be able to buy. >> your franchise model works so great in the united states, but you're in china. i know you heard some great things, you call it the asianization but what works here doesn't necessarily work there because you need to be asianized. >> of course, of course. and we're asianizing the product here. we make the product in the market where we sell it. we make 80% of what we sell in the united states right here in the united states. we've never outsourced a job. and in china, five years -- 2002, we had two offices in all of asia, ten people. now we have 5 factories, 31 offices, 1,500 people, and we're asianizing product to match that market as the repair wave rises. because in china, you know, they're selling new cars, but all the cars on the road are new. so they're not repairing them yet. so we're getting ready. >> you'll be ready. now you see why i think this is a worldwide technology company made in america and why i'm so thrilled the ceo is here.

nick pinchuk, i urge you to go to the website. watch some of the youtube videos, pretty cool. stay with cramer. the "mad money" back-to-school tour is in session. and this time we're headed to the city of brotherly love. if you're a student at villanova university and want free tickets to see cramer do the show live on campus thursday april 25th, visit "mad money".cnbc.com. [ engine revving ]

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in his natural habitat on the grounds of villanova university, the wildcat is the king of the campus. but it's springtime in philadelphia and now a new species has been introduced into his environment. "mad money's" back to school tour returns april 25th. >> boo-yah! lately i've been hearing a lot of talk about how housing can't save the economy. that it's not big enough. that it can't do much to move the needle. i hear the same thing about the oil and gas business. that no matter how much we find, it doesn't put that much to work. and the trade-off of increased use of fossil fuels just isn't worth it. let me see, how can i be polite and diplomatic about all these pessimistic judgments? they're lies.

lies keeping the federal government from helping the cause of job creation instead of hindering it. you say housing isn't big enough? we know from retailers and bankers and homeowners, that the $1 towards the purchase of a house can produce another $6 in spending. fix up the yard, make it bigger, gussy up inside. instead, the government's indecision has made it very difficult to get a mortgage, which has kept housing from breaking out to the levels anywhere near where it used to be. remember what richard smith, the ceo of realogy, the largest realtor in the country just told us last night about the government's role, he said, and i quote, the only thing holding lending back is the extraordinarily difficult underwriting standards, end quote. and that's because the feds still haven't finalized the rules for banking yet under dodd/frank. the government has not spelled out the definition of who is qualified to get a residential mortgage person.

without that definition, banks are reluctant to give a mortgage to anyone, except those who don't really need one. right now the average fico score for is an extraordinarily high 760. i asked my friends and couldn't find one who could qualify. that's wrong. stymieing the economy. how about oil and gas. if the president would simply said our goal is to be energy independent in north america by the end of my administration, he might be able to pull it off. no other president could. if obama nearly tried, it could produce a million jobs in the oil and gas industry. that's not even including the ancillary small businesses or the factory jobs that we moved here from other countries to benefit from our cheaper energy costs. but here's the rub. in order to achieve energy independence within president obama's time in office, the president would have to embrace natural gas as a surface fuel, the way they do in other countries with bountiful gas reserves. he has the ability to order government automobiles, trucks to convert to natural gas. that would then foster a huge job-creating infrastructure and make the importation of oil from diesel fuel one-quarter of all our imports into an irrelevance. however, if the president did that, his environmental base would be furious.

so instead, he says, he favors all sorts of energy. hey, that's the same thing as doing nothing. he needs to say natural gas is our fuel. we're going to use it to clean up our skies and also become energy independent. sound impossible? listen. i'm not talking about giving this industry one red cent. unlike the handouts that the farmers got for ethanol and the bankruptcy artists got for solar, if the company simply gave banks certainty when it came to mortgage lending and gave it support buying natural gas, just lip service and not just solar and ethanol, that can create neve jobs to get us out of the jobless recovery. but to get there, the feds have to stop hindering the cost. tell the president, please tell the post office and military, use natural gas vehicles. start helping. look, there's a way. i just don't know if there's a will. stay with cramer. when the going gets stuff, cramer gets going. >> you're an honest man with guts. it's a rare species. >> thanks for teaching me and putting me in charge of my own future. >> it's time to take charge of yours.

>> "mad money" with jim cramer, cnbc.

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